The government approved on Thursday the state-owned ferry company Jadrolinija's plans to borrow 51.3 million kuna (€6.94m) from Privredna Banka Zagreb (PBZ) for re-financing an earlier €9.25m purchase of a catamaran passenger ship in 2018.

The government on Thursday gave its consent to the Jadrolinija passenger ferry company to borrow HRK 51.3 million from Privredna Banka Zagreb (PBZ) for the purpose of refinancing the purchase of a new catamaran for passenger transport.

The offer made by the PBZ lender refers to the ten-year loan in the amount of HRK 51.3 million (approximately €7 million) with a fixed annual interest rate of 1.50%.

“The aim is to refinance the purchase of the Jelena catamaran which was already bought by (the company’s) own funds at a price of €9.25 million. The catamaran was put into operation on 24 October 2018, and it provides services most frequently from Split to Lastovo or from Dubrovnik via Korcula, Hvar to Bol,” Maritime Affairs and Transport Minister Oleg Butkovic said at the government’s meeting.

The consent issued by the government does not mean collateral for the loan and presents no burden for the state budget.

This catamaran, produced in Singapore, can transport 403 passengers plus an eight-member crew. This is the 51st vessel in Jadrolinija’s fleet.

Last year was successful for the Jadrolinija national ferry company as it increased its revenue and maintained its leading position in the Adriatic, which it also plans to do this year, thanks to its business development and technological advancement which should provide a better service for passengers.

According to the data presented by the company earlier this year, in 2018 the company transported 12.3 million passengers and 3 million vehicles which is an increase of 1.2% in passenger numbers and 4.4% in the number of vehicles.

(€1 = 7.39 kuna)